IVY SOFTWARE MBA PREPWORKS
FUNDAMENTALS OF ECONOMIC EXAM
EXAM(ACTUAL EXAM) WITH CORRECT
150+ QUESTIONS AND ANSWERS GOOD
SCORE IS GUARANTEED LATEST 2024 –
2025 GRADE A+
The menu costs effect - ANSWERS-argues that because it can be
expensive to change menus and pricing boards and because the
business owners don't want to constantly tell their customers
that they have changed their prices, they don't do it often. This
implies that when there is a change in the price level because of
a contraction in the economy, for example, producers keep
their prices unchanged.
,Aggregate demand curve - ANSWERS-reflects the real GDP
demanded by all groups in the economy at any given price
level. The aggregate demand curve is negatively sloped because
of the interest rate effect, the wealth effect, and the open
economy effect. May shift to the NE and to the SW
Assume a production possibilities frontier for pickup trucks and
big Mac hamburgers. The economy is producing 20 big Mac
hamburgers and 65 pickup trucks (point 20, 65). What is the
opportunity cost of producing an additional 20 Big Mac
hamburgers (point 40, 60)? - ANSWERS-Five Pickup Trucks
The opportunity cost of an item is - ANSWERS-whatever must
be given up to obtain the item.
Consider market for pork, suppose that price of beef, a
substitute for pork, increases. Because of the change in price of
beef, the equilibrium price of pork...? - ANSWERS-Increases
The main concept demonstrated in the production possibilities
frontier is - ANSWERS-Opportunity cost
,When country A has a lower opportunity cost of producing
sugar relative to country B, then country A is said to have -
ANSWERS-Comparative Advantage
A graph that shows the combinations of two goods that the
economy can produce given the available scarce resources and
available technology is called a - ANSWERS-Production
Possibilities Frontier
Consider the market for pork, suppose that the price of beef, a
substitute for pork, increases. Because of this change in the
price of beef, the equilibrium quantity of pork will...? -
ANSWERS-Increase because increase in price of beef causes
demand curve for pork to shift North East. B/c of this shift, the
equilibrium quantity of pork will increase.
Consider the market for pork. Suppose that the price of hog
feed, an input to the production of pork, increases. Because of
that change in the price of hog feed, the equilibrium quantity of
pork ...? - ANSWERS-Decreases because the increase in price of
hog feed causes the supply curve for pork to shift NW. B/c of
this shift, the quantity of pork decreases.
, Consider the market for pork. Suppose that disposable income
increases and pork is an inferior good. Because of that change
in income, the equilibrium price of pork...? - ANSWERS-
Decreases because the increase in disposable income causes
the demand curve for pork to shift south west, because pork is
an inferior good. because of this shift, the equilibrium price of
pork decreases.
Consider the market for pork. Suppose that 1) disposable
income increases and pork is a normal good, And 2) the price of
hog feed decreases. Because of these changes, the equilibrium
price of pork is... - ANSWERS-Indeterminate because the
increase in disposable income causes the demand curve for
pork to shift north east because pork is a normal good. The
decrease in price of hog feed causes the supply curve to shift to
the south east. The net effect of these shifts leaves us unable to
say waht will happen to the equilibrium price of pork.
Consider the market for pork. Suppose that disposable income
increases and pork is a normal good and the price of hog feed
decreases. The equilibrium quantity of pork...? - ANSWERS-
Increases.
FUNDAMENTALS OF ECONOMIC EXAM
EXAM(ACTUAL EXAM) WITH CORRECT
150+ QUESTIONS AND ANSWERS GOOD
SCORE IS GUARANTEED LATEST 2024 –
2025 GRADE A+
The menu costs effect - ANSWERS-argues that because it can be
expensive to change menus and pricing boards and because the
business owners don't want to constantly tell their customers
that they have changed their prices, they don't do it often. This
implies that when there is a change in the price level because of
a contraction in the economy, for example, producers keep
their prices unchanged.
,Aggregate demand curve - ANSWERS-reflects the real GDP
demanded by all groups in the economy at any given price
level. The aggregate demand curve is negatively sloped because
of the interest rate effect, the wealth effect, and the open
economy effect. May shift to the NE and to the SW
Assume a production possibilities frontier for pickup trucks and
big Mac hamburgers. The economy is producing 20 big Mac
hamburgers and 65 pickup trucks (point 20, 65). What is the
opportunity cost of producing an additional 20 Big Mac
hamburgers (point 40, 60)? - ANSWERS-Five Pickup Trucks
The opportunity cost of an item is - ANSWERS-whatever must
be given up to obtain the item.
Consider market for pork, suppose that price of beef, a
substitute for pork, increases. Because of the change in price of
beef, the equilibrium price of pork...? - ANSWERS-Increases
The main concept demonstrated in the production possibilities
frontier is - ANSWERS-Opportunity cost
,When country A has a lower opportunity cost of producing
sugar relative to country B, then country A is said to have -
ANSWERS-Comparative Advantage
A graph that shows the combinations of two goods that the
economy can produce given the available scarce resources and
available technology is called a - ANSWERS-Production
Possibilities Frontier
Consider the market for pork, suppose that the price of beef, a
substitute for pork, increases. Because of this change in the
price of beef, the equilibrium quantity of pork will...? -
ANSWERS-Increase because increase in price of beef causes
demand curve for pork to shift North East. B/c of this shift, the
equilibrium quantity of pork will increase.
Consider the market for pork. Suppose that the price of hog
feed, an input to the production of pork, increases. Because of
that change in the price of hog feed, the equilibrium quantity of
pork ...? - ANSWERS-Decreases because the increase in price of
hog feed causes the supply curve for pork to shift NW. B/c of
this shift, the quantity of pork decreases.
, Consider the market for pork. Suppose that disposable income
increases and pork is an inferior good. Because of that change
in income, the equilibrium price of pork...? - ANSWERS-
Decreases because the increase in disposable income causes
the demand curve for pork to shift south west, because pork is
an inferior good. because of this shift, the equilibrium price of
pork decreases.
Consider the market for pork. Suppose that 1) disposable
income increases and pork is a normal good, And 2) the price of
hog feed decreases. Because of these changes, the equilibrium
price of pork is... - ANSWERS-Indeterminate because the
increase in disposable income causes the demand curve for
pork to shift north east because pork is a normal good. The
decrease in price of hog feed causes the supply curve to shift to
the south east. The net effect of these shifts leaves us unable to
say waht will happen to the equilibrium price of pork.
Consider the market for pork. Suppose that disposable income
increases and pork is a normal good and the price of hog feed
decreases. The equilibrium quantity of pork...? - ANSWERS-
Increases.
